IEA Predicts Accelerating Global Electricity Demand Growth

Global electricity demand growth is accelerating due to robust increases in power use from industry, electric vehicles, air conditioning, and data centers. According to a recent report by the IEA, global electricity demand will grow by 3.6% this year and 3.8% next year, with consumption reaching 30,700 TWh in 2027.

The growth is driven by strong underlying demand, despite market turmoil and volatile prices caused by disruptions to natural gas markets due to the war in the Middle East. This has led to higher electricity generation costs in many regions, but power systems have largely weathered the impacts so far.

Renewable energy sources are on track to become the world's largest source of electricity generation this year, overtaking coal after reaching near parity last year. Solar power continues to lead growth, with global solar PV generation forecast to increase by around 600 TWh in 2026, matching the record annual growth achieved in 2025.

The IEA report also highlights that weather-related developments may affect electricity demand trends significantly, adding uncertainty to the outlook. A stronger-than-expected El Niño event could boost electricity demand further by raising cooling needs while simultaneously reducing hydropower and wind generation in some regions.